For advice on accessing pension benefits, contact the government’s free and impartial guidance service Pension Wise.

Freedom Individual Savings Account (ISA)

 

The Freedom ISA is a Stocks and Shares ISA and is a tax-efficient way to build your savings.

 

All investments carry an element of risk which may differ significantly. If you are unsure as to the suitability of any particular investment or product you should seek professional financial advice.

 

Who can use it?

The Freedom ISA is open to UK residents who have a National Insurance number.

Please note we do not accept applications from individuals who are US persons for tax compliance purposes.

 

Can I consolidate my savings from other ISAs?

Yes, we will be pleased to provide you with assistance to consolidate your ISA holdings into one Freedom ISA. We recommend that before doing so, you seek financial advice.

 

Are there limits on how much I can contribute?

You are free to contribute as much as you like whenever you want to, subject to HMRC limits.

The maximum subscription limit for this tax year (2016/17) is £15,240. The minimum lump sum contribution to the Freedom ISA is £1,000 while the minimum lump sum top-up is £500. In addition, the minimum monthly contribution is £80 per month.

 

Is there a limit to the size of fund I can build up?

No, there is no limit to the size of fund you can build in a Freedom ISA.

Please remember the value of your investments and any income from them can go down as well as up and you may get back less than the amount you originally invested.

 

What investments are allowed?

The Freedom ISA is predominantly designed to hold mutual funds, model portfolios or other individual liquid investments. Any funds or instruments used are subject to our internal investment controls which vary time to time.

 

Where are these investments held?

All assets in your Freedom ISA are held for your benefit by our nominee company, Avalon Investments Services (Nominees) Limited.

 

How do I get my money out?

You can make withdrawals at any time.

 

Is it tax-efficient?

A Freedom ISA is a tax-efficient way of building your savings. If you have investments outside your Freedom ISA which pay dividends in excess of £5,000 in any tax year, you will be liable for a tax charge at 7.5%, 32.5% or 38.1% depending on whether you are a basic rate, higher rate or additional rate taxpayer. If you hold the assets in an ISA dividends are paid tax-free.

If you hold interest-bearing investments such as corporate bonds and gilts in a Freedom ISA, then the interest paid is free from income tax.

Lastly, when you decide to take money out of your Freedom ISA there is no Capital Gains Tax to pay.

Laws and tax rules may change in the future without notice. The information here is based on our current understanding of the tax rules. This information takes no account of your personal circumstances, which may impact on tax treatment.

 

Who administers my plan?

Your plan will be administered at our offices in Tetbury, Gloucestershire. We provide a friendly and personable service where you can speak directly to the team managing your plan.

 

How much does it cost?

You can find details of the costs in our Freedom ISA fact sheet.

 

Is the Freedom ISA suitable for me?

Avalon is the manager of your plan. We are not authorised financial advisers and cannot provide you with advice about your ISA or your investments. You should take financial advice from an adviser authorised by the Financial Conduct Authority, the UK regulator of financial services You can find an adviser at www.unbiased.co.uk

 

Can I apply to you directly?

No, we only work with authorised financial advisers so we can be sure your plan and your investments are right for you.